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Separation of Inputs + Calculations
Understand the need for inputs, calculations and outputs to be on separate sheets in a workbook.
When to use
When building a financial model, developers need to ensure that inputs, calculations and outputs and kept separate from each other in the workbook.
- Inputs, calculations and outputs should all be kept separate when developing a financial model.
- The inputs sheet can be sent to the person who will enter the input data.
- The calculation sheet will have cells linking to the input sheet.
- This sheet is where all the hard work is done.
- The output sheet is generally for third parties or managers to be used for analysis.
- The output sheet links directly from the calculation sheet. No formulas are created in this sheet.
- Logic should flow
- From left to right
- From top to bottom
- From front to back
- Model is easier to follow
- Speeds calculation time
- But this cannot always be strictly applied
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